Tokyo rubber futures rise

07 Apr, 2009

Key Tokyo rubber futures rose 1.5 percent on Monday to their highest level in nearly four months, supported by firmer oil prices and a weaker yen, but traders remained wary of emerging optimism over the global economy. While German car sales jumped last month on government steps to support the struggling industry, the uncertain fate of top US automakers kept traders cautious about how far the rubber market could extend its recent rally.
The key Tokyo Commodity Exchange rubber contract for September delivery closed the morning at 166.3 yen per kg, up 2.5 yen or 1.5 percent from Fridays close. The benchmark rose as high as 168.0 yen earlier, the highest since November 19. The lead contract rose about 6 percent last week. US automaker General Motors Corp will move quickly into bankruptcy if necessary, Chief Executive Fritz Henderson said in an interview with the Financial Times newspaper published on Friday.
The company warned there is a growing risk it could file for bankruptcy by June as it has 60 days to reach deeper concessions with bondholders and unions after its previous restructuring plan was rejected by the US government. Germany will extend incentives aimed at encouraging people to scrap old cars and buy new, fuel-efficient vehicles, though the subsidies are likely to be reduced, ruling party sources said on Thursday.
German car sales jumped 40 percent in March thanks largely to the government incentives data showed last week. Asian physical rubber prices were little changed on Monday as traders carefully eyed the fate of GM amid growing optimism about the global economy, which has boosted stock markets. The US dollar was up 0.5 percent against the yen, with the weaker yen helping to inflate yen-based rubber prices.

Read Comments